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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
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Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 12 percent. |
| Year | Â Â Project F | Â Â Project G | ||
| 0 | Ac€?o$ | 141,000     | Ac€?o$ | 211,000     |
| 1 | Â | 57,000Â Â Â Â Â | Â | 37,000 Â Â Â Â |
| 2 | Â | 53,000Â Â Â Â Â | Â | 52,000Â Â Â Â Â |
| 3 | Â | 63,000Â Â Â Â Â | Â | 93,000Â Â Â Â Â |
| 4 | Â | 58,000Â Â Â Â Â | Â | 123,000Â Â Â Â Â |
| 5 | Â | 53,000Â Â Â Â Â | Â | 138,000Â Â Â Â Â |
| Â | ||||
| Required: |
| (a) |
Calculate the payback period for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
| Â | Payback period |
| Â Â Project F | years |
| Â Â Project G | years |
| Â | |
| (b) |
Calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
| Â | Net present value |
| Â Â Project F | $Â Â Â Â Â |
| Â Â Project G | $Â Â Â Â Â |
| Â | |
| (c) | Which project should the company accept? |
| Â |
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